N.Y. State Teachers chooses 4 for real estate securities, commits to private equity

New York State Teachers’ Retirement System, Albany, hired four managers to run a total of up to $840 million in global real estate public securities, and committed $200 million to a private equity fund, according to a meeting summary of the pension fund’s Thursday board meeting.

The $109.2 billion pension fund hired AEW Capital Management, Brookfield Investment Management, Dimensional Fund Advisors and Heitman to run up to $210 million each in portfolios benchmarked to the FTSE EPRA/NAREIT Developed index.

The pension fund also committed up to $200 million to KKR Asian Fund III, a pan-Asian buyout fund managed by KKR & Co. Previously, the pension fund had committed $85 million to KKR Asian Fund II in 2013.

Separately, the pension fund renewed the contract of private equity consultant TorreyCove Capital Partners for one year, effective May 1, and renewed the contracts of four managers, each for one year:

  • Iridian Asset Management, $1 billion as an active domestic midcap equity manager, effective April 1;
  • BlackRock (BLK), $527 million as a commercial mortgage-backed securities manager, effective April 3;
  • Torchlight Investors, $445 million as a commercial mortgage-backed securities manager, effective March 30; and
  • FIS Group, $102 million as an active international equity manager, effective April 25.